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Enhancing Microsoft CRM with
,
Real-Time Analytical Capabilities
“GSTAT – Advanced Data Mining Solutions”
in corporation with
“We – Consulting Group”
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January 2007
© Copyright GSTAT LTD. 2003
Content
 Introduction
 Real Time Analytics incorporated with MCRM –
Demonstration of Business Scenario
 Next Best Offer
 Churn Management
 Credit Risk
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© Copyright GSTAT LTD. 2003
Integrating G-STAT Analytical Platform With Microsoft CRM
 The following presentation presents the potential integration between
Microsoft CRM solution with G-STAT Analytical Platform (AP).
 G-STAT AP is a package of advanced real-time data mining solutions,
based on SQL Server 2005 and .net technology. G-STAT AP provides a
customized set of analytical solutions for each of the following 4 industries:
Finance, Telecom, Retail and Healthcare and acts as a back-end
recommendation engine.
 MCRM is used as front-end application which allows the management of
customers interactions. The described integration enables the MCRM users
to receive analytical based recommendations to support existing or potential
interactions and allow a more personalized interaction.
 Such integration will deliver the most advanced analytical approach
available in the market today, seamlessly as part of the Microsoft CRM
platform, surpassing, in terms of capabilities, the leading CRM players.
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© Copyright GSTAT LTD. 2003
Content
 Introduction
 Real Time Analytics incorporated with MCRM –
Demonstration of Business Scenario (Banking Demo)
 Next Best Offer
 Customer Retention
 Credit Risk
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© Copyright GSTAT LTD. 2003
 A customer calls to the Call-Center or enters the branch.
 Via the MCRM application, The banker can view 3 additional
“Analytical Folders” supporting the customer interaction by:
(1) identifying suitable cross sell/up sell opportunities,
(2) suggesting
effective retention activities,
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Next Best Offer
 Via the “Inbound Marketing” analytical folder, the banker can view the customer’s
Next Best Offers (NBO) : The financial products/services that the customer is most
likely to buy at this moment, and have been authorized to sell to this customer.
 The recommendations are based on GSTAT Analytical Recommendation Engine,
an advanced analytical solution which finds customers’ NBO, based on advanced
data mining models which analyze customer financial and behavior profile.
 The NBO recommendations can be updated in real-time according to interaction
with the5banker, if new, meaningful data has been documented in the MCRM.
© Copyright GSTAT LTD. 2003
Next Best Offer
 After offering the customer his Next Best Offer, MCRM
will open an opportunity with the proper status.
 From this point on, the MCRM will follow and manage
the opportunity until it be completed.
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© Copyright GSTAT LTD. 2003
Next Best Offer
G-STAT Analytical Recommendation Engine –
Smarter and Profitable Marketing
 On top of recommending NBO within inbound marketing activities, GSTAT
Analytical Recommendation Engine automatically produce every night potential
lists, based on data mining models, for every relevant product and service sold
by the bank
 Within these potential lists, all the company’s customers are scored from 1 to
100 by their likelihood to accept targeted marketing offer to purchase every
product or service
 Companies use these scores as inputs to their campaign management /
reporting systems as a base for more targeted and profitable campaigns
 Experience have shown that response rates raised from 3% to over 30% (!)
thanks to using G-STAT solution recommendations while performing 1-To-1
Marketing
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© Copyright GSTAT LTD. 2003
Customer Retention
 Via the “Customer Retention” analytical folder,
the banker can view the customer’s probability to
close his account or shift financial activities to
other banks.
 The Churn risks indicators and recommended
retention programs are based on GSTAT Churn
Prediction Solution (CPS), an advanced
analytical solution which finds customers’ churn
propensity and recommends retention program
based on advanced data mining models which
analyze customer financial profile.
 The indicators and recommendations can be
updated in real-time according to new and
meaningful information received within an
interaction8 with the customer.
© Copyright GSTAT LTD. 2003
Customer Retention
 Indicators regarding customer’s past and future
churn risk - pre-calculated (monthly/weekly)
and real-time calculated (based on new
information gathered during interaction with the
customer)
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© Copyright GSTAT LTD. 2003
Customer Retention
 Information regarding
customer’s most significant
churn reasons
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© Copyright GSTAT LTD. 2003
Customer Retention
 Information regarding
customer’s recommended
personalized retention
programs
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© Copyright GSTAT LTD. 2003
Credit Risk
 Via the “Credit Risk” analytical folder, the banker can view the customer’s Credit
Risk indicators and run credit risk simulations by changing his financial attributes.
 The Credit Scoring is based on GSTAT Credit Risk Solution (CRS), an advanced
analytical solution which calculates customers’ Credit Scoring, based on advanced
data mining models which analyze customer financial, demographic and
behavior profile.
 Along side the credit risk, each customer’s potential to buy more credit is also
presented – This enables the banker to have a clear picture of the opportunity and
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© Copyright GSTAT LTD. 2003
risk in proposing
additional credit products.
Credit Risk
 Indicators regarding customer’s past and future
credit risk are presented along side the
customer’s probability to purchase more credit.
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© Copyright GSTAT LTD. 2003
Credit Risk
Graph describing customer’s risk curve and credit
authorization/pricing limits :
Green – Safe credit risk.
Yellow – Medium credit risk – higher rate needed or
branch manager authorization needed.
Red – High credit risk – higher rate needed for risk
compensation or division manager authorization
needed.
$ 110,000
$ 80,000
$ 15,000
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© Copyright GSTAT LTD. 2003
Solution Overview – How do we compliment the Microsoft CRM platform
Business
Solution
Microsoft CRM
G-STAT Analytical Platform
Next Best Offer
(Inbound)
 Show for each customer his Next
best offers.
 The bankers updates MCRM
according to customer needs.
 Show for each customer his realtime updated NBO.
 Opens and track each
opportunity thru it’s completion.
 Runs every night advanced data mining
models and prepare NBO for each
customer.
 Updates NBO recommendations in realtime according to interaction with the
customer.
 Real-time recommendations are updated
using web service vis a vis MCRM and
GSTAT AP
Next Best Offer
(Outbound)
 Deploy multi channel targeted
campaigns for specific
products/services
 Runs every night advanced data mining
models and prepare potential lists for each
product/service.
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© Copyright GSTAT LTD. 2003
Solution Overview – How do we compliment the Microsoft CRM platform
Business
Solution
Microsoft CRM
G-STAT Analytical Platform
Customer
Retention
 Presents at each interaction the
customer’s churn propensity, main
churn reasons and recommended
retention program.
 The banker is enabled to propose
appropriate retention offers.
 The banker is able to document and
track the retention activity until it’s
completion.
 Runs every night advanced data mining
models and estimates the churn
probability and recommended retention
program for each customer
 Updates churn info and recommendations
in real-time according to interaction with
the customer
 Prepares weekly potential lists of high
churn risk customers for pro-active
retention campaigns
Credit Scoring
 Presents at each relevant
interaction the customer Credit risk
and credit potential.
 Enables the banker to simulate
different credit offerings vis a vis
customer credit risk.
 The banker is able to document and
track the credit activity until it’s
completion.
 Runs every night advanced data mining
models and estimates the credit scoring
risk curve for each customer.
 Updates credit risk info in real-time
according to interaction with the customer.
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© Copyright GSTAT LTD. 2003